HUD’s Office of Housing on September 30 issued a new (H 10-22), effective immediately, containing guidelines for assumption, subordination, or assignment of Mark-to-Market (M2M) Program Loans in transfer of physical assets (TPA) and refinance transactions. The guidelines amend and restate HUD’s draft Guidance dated June 2006, titled “Draft Policy for Assumption and Subordination of Mark-to-Market (“M2M”) Notes in Transfer of Physical Assets (“TPA”) Transactions.” The new guidelines apply to any request to assume, subordinate, and/or assign a loan evidenced by a note, and to waive the due-on-sale or refinance clause. The guidance also applies to requests to assume and/or subordinate loans originated under M2M’s predecessor program, the Portfolio Reengineering Demonstration Program. Read More…